On the occasion, he highlighted the scientific approach to face the management challenges.
Dr. Goldratt recalled the era when Management Science was still a soft science and not a hard science. That was the time when he decided to approach management challenges with a scientific approach like any other research based hard science. The problems in Operations management have to be systematically approached so that the unpredictability of outputs can be contained, he said.
This unpredictability is the cause and effect of all chaos in business. He pointed out that, when one allows a system to exist with multiple constraints it results in chaos. Traditionally, the drawback has been the approach to management problems in an unscientific way.
According to him, Physicists gain credibility by supporting their concepts with mathematical proofs but management theorists shy away from it. If the bottleneck problems can be handled with mathematical approaches he opined that the results would be more effective.
He also talked about the commitment to accept changes in the way one does business. He proposed two hypotheses. In these two hypotheses, he mentioned that, people resist changes and bigger the change, bigger is the resistance. Secondly, people examine the required change, and they accept that only when they find it god for them. He gave the example of resistance to layoff jobs en-masse when companies started adopting Just- In-Time practices. The JIT practice and cost control had no meaning if the layoffs did not happen.
Dr. Goldratt also talked in detail about the Process of on Going Improvement (POOGI). He compared the nature of performance growths in terms of the real sense and the management aim. He explained how these were closely related to the balance of stability and growth of a firm. The companies, which were Built-To-Last, realized this and formulated their strategies and tactics accordingly he observed.
Dr. Goldratt defined strategy as the answer to the question What for and tactics as the answer to the question how. To be effective, he said, these two have to be treated as a couple rather than the usual way of seeing of strategy as top level approach and tactics as lower level approach.
Towards the end he advised management graduates to come out of the traditionally biased knowledge and start thinking creatively with ones own reasoning power.
Goldratts book Theory Of Constrains is a fiction woven around the theory of constraints. The book goes on to point out the role of bottlenecks in a manufacturing process, and how identifying them not only allows for removing them, but also yields a useful tool for measuring and controlling the flow of materials.
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On the occasion, he highlighted the scientific approach to face the management challenges.
Dr. Goldratt recalled the era when Management Science was still a soft science and not a hard science. That was the time when he decided to approach management challenges with a scientific approach like any other research based hard science. The problems in Operations management have to be systematically approached so that the unpredictability of outputs can be contained, he said.
This unpredictability is the cause and effect of all chaos in business. He pointed out that, when one allows a system to exist with multiple constraints it results in chaos. Traditionally, the drawback has been the approach to management problems in an unscientific way.
According to him, Physicists gain credibility by supporting their concepts with mathematical proofs but management theorists shy away from it. If the bottleneck problems can be handled with mathematical approaches he opined that the results would be more effective.
He also talked about the commitment to accept changes in the way one does business. He proposed two hypotheses. In these two hypotheses, he mentioned that, people resist changes and bigger the change, bigger is the resistance. Secondly, people examine the required change, and they accept that only when they find it god for them. He gave the example of resistance to layoff jobs en-masse when companies started adopting Just- In-Time practices. The JIT practice and cost control had no meaning if the layoffs did not happen.
Dr. Goldratt also talked in detail about the Process of on Going Improvement (POOGI). He compared the nature of performance growths in terms of the real sense and the management aim. He explained how these were closely related to the balance of stability and growth of a firm. The companies, which were Built-To-Last, realized this and formulated their strategies and tactics accordingly he observed.
Dr. Goldratt defined strategy as the answer to the question What for and tactics as the answer to the question how. To be effective, he said, these two have to be treated as a couple rather than the usual way of seeing of strategy as top level approach and tactics as lower level approach.
Towards the end he advised management graduates to come out of the traditionally biased knowledge and start thinking creatively with ones own reasoning power.
Goldratts book Theory Of Constrains is a fiction woven around the theory of constraints. The book goes on to point out the role of bottlenecks in a manufacturing process, and how identifying them not only allows for removing them, but also yields a useful tool for measuring and controlling the flow of materials.
| Check Top MBA Colleges in India by Cities | | |
| Also Read Important Articles on MBA Admission | ||
| Top MBA Colleges in India | MBA Admission | MBA Entrance Exam |
| MBA Placements | MBA Ranking In India | GD Topics |
Management thinker and author of book Theory Of Constraints and Goal, Dr. Eliyahu Goldratt shared his thoughts during a guest lecture at Great Lakes Institute of Management on December 12.